HOUSE FINANCE COMMITTEE March 24, 1993 1:35 p.m. TAPE HFC 93-57, Side 1, #000 - end. TAPE HFC 93-57, Side 2, #000 - end. TAPE HFC 93-58, Side 1, #000 - end. TAPE HFC 93-58, Side 2, #000 - end. TAPE HFC 93-59, Side 1, #000 - end. TAPE HFC 93-59, Side 2, #000 - 267. CALL TO ORDER Co-Chair Larson called the House Finance Committee to order at 1:35 p.m. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Foster Representative Therriault Representative Grussendorf ALSO PRESENT Representative Ulmer; Representative Davidson; Representative Davies; Mike Greany, Director, Legislative Finance Division; Cheryl Frasca, Director, Division of Budget Review, Office of Management and Budget; Darrel J. Rexwinkel, Commissioner, Department of Revenue; Rod R. Mourant, Special Assistant, Department of Revenue; Tracy McGill, Director, Division of Administrative Services, Department of Revenue; Nico Bus; Chief Financial Officer, Department of Natural Resources; Raga Elim, Special Assistant, Department of Natural Resources; Bruce Botelho, Assistant Attorney General, Department of Law; Richard Pegues, Director, Division of Administrative Services, Department of Law; Dean Guaneli, Chief, Assistant Attorney General, Department of Law; Edgar Blatchford Commissioner, Department of Community and Regional Affairs; Remond Henderson, Director, Division of Administrative Service, Department of Community and Regional Affairs; Carl L. Rosier, Commissioner, Department of Fish and Game; Ron Somerville, Deputy Commissioner, Department of Fish and Game; Larry Jones, Director, Division of Administration, Department of Fish and Game; William Stoltze, Staff, Representative Willis. SUMMARY INFORMATION 1 HB 55 "An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date." HB 55 was HELD in Committee. DEPARTMENT OF REVENUE - AMENDMENTS Representative Grussendorf MOVED to RESCIND the Committee's action in adopting Amendment REV-7. There being NO OBJECTION, it was so ordered. Representative Grussendorf provided members with substitute Amendment REV-7 (Attachment 1). He explained that the amendment would restore funding to keep the Fairbanks and Juneau Child Support Enforcement Offices open. Funding would be taken from the Human Relations Commission. Representative Grussendorf MOVED to ADOPT AMENDMENT REV-7. There being NO OBJECTION, it was so ordered. Representative Brown provided members with AMENDMENT REV-9, additional support to the Oil and Gas Audit component (copy on file). Representative Brown MOVED to AMEND Amendment REV-9, to delete "$500.0" and insert "$200.0" thousand dollars. There being NO OBJECTION, it was so ordered. Representative Martin OBJECTED to the adoption of the amended amendment. DARREL J. REXWINKEL, COMMISSIONER, DEPARTMENT OF REVENUE stressed that the Department must issue an assessment within three years of the tax filing date in order to meet the statute of limitations. After the assessment has been issued the Department has six years to complete the audit. He emphasized the need to complete timely audits. He maintained that the Division's audits are failing behind. A roll call vote was taken on the motion to adopt AMENDMENT REV-9 as amended. IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre OPPOSED: Hanley, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (5-6). Representative Brown WITHDREW AMENDMENT REV-10 (copy on file). Representative Grussendorf MOVED to ADOPT INTENT LANGUAGE REV-A: "It is the intent of the Legislature that the Department will keep the Fairbanks and Juneau field offices 2 of the Child Support Enforcement Division operating in FY 94." Representative Martin expressed his desire to see the offices expand their functions. There being NO OBJECTION, it was so ordered. Representative Martin MOVED to ADOPT INTENT LANGUAGE REV-B: "It is the intent of the Legislature that the Department of Revenue delete all unfunded PCN's." Intent Language REV-B was previously adopted. DEPARTMENT OF LAW Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Law component #87, Third Judicial District to amend interagency receipts services requests (copy on file). DEAN GUANELI, CHIEF ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW explained that the amendment would provide one legal secretary for a federally funded narcotics unit in Anchorage. There being NO OBJECTION, the Governor's Amendment for the Department of Law component #87, Third Judicial district to amend interagency receipts services requests, was adopted. BRUCE BOTELHO, DEPUTY ATTORNEY GENERAL, DEPARTMENT OF LAW clarified that legal counsel for the Alaska Housing Finance Corporation is being transferred to the Department of Law. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Law component #93, Operations, attorney transfer (copy on file). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Law component #1421, Mental Health Lands, accelerate reconstitution Mental Health Trust (copy on file). Mr. Botelho explained that $500.0 thousand dollars would allow the completion of technical work associated with the Weiss settlement. Members asked the settlement status. Mr. Botelho was unable to answer. The Governor's Amendment for the Department of Law component #1421, Mental Health Lands, accelerate reconstitution Mental Health Trust was HELD open. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Law component #1175, Exxon Valdez litigation (copy on file). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED to ADOPT AMENDMENT LAW-1 (copy on file). He explained that the amendment would add an 3 attorney III position to handle the increased number of cases expected to be generated by the new Wasilla police force (Attachment 2). Mr. Guaneli clarified that the Valdez and Glennallen cases are also handled out of the Palmer DA office. Representative Martin OBJECTED to the motion to adopt Amendment LAW-1. A roll call vote was taken on the motion. IN FAVOR: Parnell, Therriault, Grussendorf, Hoffman, Maclean, Larson OPPOSED: Martin, Brown, Hanley The MOTION PASSED (6-3). Representatives Navarre and Foster were not present for the vote. Representative Brown MOVED to ADOPT AMENDMENT LAW-2, add $145.0 thousand dollars for two investigators, Fair Business Practice (copy on file). Mr. Botelho observed that the Fairbanks investigator is the only individual able to respond to consumer complaints (Attachment 3). Representative Hanley OBJECTED. A roll call vote was taken on the motion to adopt Amendment LAW-2. IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Foster, Hanley, Hoffman, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (3-8). Representative Navarre MOVED to ADOPT AMENDMENT LAW-3 (copy on file). Co-Chair Larson observed that the amendment would decrease Permanent Fund corporation receipts for legal expenses incurred by the Department of Law for cases resulting in payments to the Fund. (Tape Change, HFC 93-57, Side 2) Co-Chair Larson referred to a letter from Attorney General Cole, dated 3/9/93 (Attachment 4). The letter details charges that should have been made to the Permanent Fund Corporation. Mr. Botelho added that litigation requires continuing support from the Corporation. There being NO OBJECTION, Amendment LAW-3 was adopted. Representative Brown MOVED to ADOPT, on behalf of Representative Willis, INTENT LANGUAGE LAW-A (copy on file). The intent language would ask the Department of Law to work with the University of Alaska to use student interns to assist with screening consumer complaints. 4 Representative Hanley noted that the intent language includes the request that the Department of Law consult with the Alaska Public Interest Research Group. WILLIAM STOLTZE, STAFF, REPRESENTATIVE WILLIS explained that the sponsor included the Alaska Public Interest Research Group due to their interest. Representative Brown MOVED to AMEND Intent Language LAW-A, to delete "and the Alaska Public Interest Research Group". There being NO OBJECTION, it was so ordered. Representative Martin OBJECTED to the motion to adopt Intent Language LAW-A as amended. A roll call vote was taken on the motion. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Foster, Hanley, Parnell, MacLean, Larson OPPOSED: Martin, Therriault Representatives Navarre and MacLean were not present for the vote. The MOTION PASSED (7-2). DEPARTMENT OF FISH AND GAME Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Fish and Game component #479, Administrative Services (copy on file). LARRY JONES, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF FISH AND GAME explained that the amendment would provide vendor compensation for the King Salmon Fund. Representative Hanley noted that legislation is pending to allow vendor compensation from the Fish and Game Funds. Representative Hanley MOVED to AMEND the Governor's Amendment for the Department of Fish and Game component from general funds to other (Fish and Game Funds). There being NO OBJECTION, #479 was amended. There being NO OBJECTION, component #479 as amended was adopted. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Fish and Game component #487, Special Projects (copy on file). Mr. Jones explained that the amendment would increase travel for State Emergency Response Commission meetings. Representative Hanley MOVED to keep the amendment open. There being NO OBJECTION, it was so ordered. 5 Representative Hanley MOVED to ADOPT AMENDMENT FG-2 (copy on file). The amendment was by request of Representative Williams. The amendment would transfer funding from the Habitat component to the Commercial Fisheries component to increase harvest opportunities. CARL L. ROSIER, COMMISSIONER, DEPARTMENT OF FISH AND GAME spoke against the amendment. He asserted that the Division of Habitat would be adversely affected by the reduction. Representative Hanley spoke against the amendment. Representative Hoffman pointed out that general fund support for the Department of Fish and Game has been reduced since 1982 by $9.4 million dollars or 17.9 percent. A roll call vote was taken on the motion to adopt Amendment FG-2. IN FAVOR: Grussendorf, Hoffman, Navarre OPPOSED: Brown, Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (3-8). Representative Hoffman MOVED to add $200.0 thousand dollars to the Commercial Fisheries BRU (Amendment FG-2, second part). A roll call vote was taken on the motion. IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre, MacLean OPPOSED: Hanley, Martin, Parnell, Therriault, Larson The MOTION PASSED (6-5). Representative Hanley WITHDREW AMENDMENTS FG-3 and FG-4 (copy on file). Representative Hoffman WITHDREW AMENDMENT FG-5 (copy on file). Representative Grussendorf MOVED to ADOPT AMENDMENT FG-6 (copy on file). He explained that the amendment would provide funding for two additional hearing officers for the Commercial Fisheries Entry Commission. He noted that the caseload is backlogged. A roll call vote was taken on the motion. IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre OPPOSED: Hanley, Parnell, Therriault, MacLean, Larson The MOTION FAILED (5-5). 6 Representative Grussendorf WITHDREW AMENDMENTS FG-7 and FG-8 (copy on file). Representative Navarre MOVED to HOLD OPEN AMENDMENT FG-9 (copy on file). Representative Hanley, on behalf of Representative G. Davis, MOVED to ADOPT AMENDMENT FG-10, reduce funding for the Snettisham hatchery by $100.0 thousand dollars and increase funding for the Crooked Creek hatchery (copy on file). Representative Navarre suggested that the amendment could be funded through Fish and Game Funds. He expressed concern that sport fish stocks will be adversely affected by reductions to the hatcheries program. (Tape Change, HFC 93-58, Side 1) Commissioner Rosier discussed the impact of a $100.0 thousand dollar reduction to the Snettisham hatchery. He asserted that the reduction would adversely affect hatchery stocks. Representative Hanley stressed that the hatcheries will not be funded beyond FY 94. RON SOMERVILLE, SPECIAL ASSISTANT, DEPARTMENT OF FISH AND GAME emphasized that the Department is anticipating a $1.0 million dollar shortfall in federal funds for the Division of Sport Fish. He added that the House Finance Subcommittee for the Department has also recommended a $488.0 thousand dollar reduction in the Division of Sport Fish. REPRESENTATIVE FRAN ULMER stressed the importance of the Snettisham hatchery. Representative Navarre MOVED to AMEND Amendment FG-10, to change the funding source from the Snettisham hatchery to the Fish and Game Fund. Members discussed the Fish and Game Fund. Commissioner Rosier noted that the Fish and Game Fund is already committed. He stressed that passage of the amendment would result in a $100.0 thousand dollars reduction to one of the projects already approved. Members discussed the Fairbanks office space. Co-Chair MacLean noted that she was reviewing whether building construction is a proper use of Fish and Game Funds. A roll call vote was taken on the motion to adopt Amendment FG-10 as amended. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson 7 The MOTION FAILED (4-7). Representative Hoffman MOVED to ADOPT AMENDMENT FG-11, on behalf of Representative Davidson (copy on file). REPRESENTATIVE CLIFF DAVIDSON explained that Amendment FG-11 would add 170.0 thousand dollars in program receipts for the transition of the Kitoi Bay and Pillar Creek hatchery managers. The private aquaculture association will pay the salaries. There being NO OBJECTION, Amendment FG-11 was adopted. Co-Chair MacLean MOVED to ADOPT AMENDMENT FG-1, to add $74.0 thousand dollars for the regional coordinator in Kotzebue and delete $74.0 thousand dollars for the Southeast Stream Rehabilitation project. Representative Grussendorf OBJECTED. He specifically objected to the funding source. Commissioner Rosier expressed support for the addition of a Kotzebue regional coordinator. He stressed that the reduction would have adverse effects but that the Department would support the amendment. Representative Grussendorf MOVED to AMEND Amendment FG-1to change the funding source to general funds by deleting the decrement. Representative Hanley OBJECTED. Representative Hoffman spoke on behalf of the motion to amend. A roll call vote was taken on the motion to amend. IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre, MacLean OPPOSED: Parnell, Therriault, Hanley, Larson Representative Martin was not present for the vote. The MOTION PASSED (6-4). Representative Hanley OBJECTED to the motion to adopt Amendment FG-1 as amended. A roll call vote was taken on the motion to adopt Amendment FG-1 as amended. IN FAVOR: Brown, Hoffman, Grussendorf, Navarre, MacLean OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, Larson The MOTION FAILED (5-6). On behalf of Representative Davidson, Representative Hoffman MOVED to ADOPT INTENT LANGUAGE FG-A (copy on file). REPRESENTATIVE CLIFF DAVIDSON explained that the intent language would assure that the Westward Region office of the 8 Department of Fish and Game will not be eliminated. He emphasized the need for regional representation in the state's leading fishing region. Commissioner Rosier acknowledged Kodiak's importance as a regional office but emphasized that cuts must be made. (Tape Change, HFC 93-58, Side 2) Representative Davidson spoke against centralization. There being NO OBJECTION, Intent Language FG-A was adopted. Representative Hanley MOVED to ADOPT INTENT LANGUAGE FG-B (copy on file). He explained that funding for hatcheries will not be continued past FY 94. There being NO OBJECTION, it was so ordered. Representative Hanley MOVED to ADOPT INTENT LANGUAGE FG-C (copy on file). He explained that the intent language would indicate the project allocations for increasing harvest opportunities. A total of $333.0 thousand dollars is appropriated to the Commercial Fisheries component. There being NO OBJECTION, it was so ordered. DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Community and Regional Affairs component CHERYL FRASCA, DIVISION DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR explained that the amendment would make a technical adjustments in designated grants. Representative Brown asked which grants would be affected. The amendment was HELD for further information. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Community and Regional Affairs component being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Community and Regional Affairs component profiles and maps (copy on file). Representative Therriault asked that the amendment be HELD open. The amendment was HELD open. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Community and Regional Affairs component Frasca explained that the amendment wold add interagency 9 receipt authority for the State Emergency Response Commission. Representative Therriault asked to that the amendment be HELD open. The amendment was HELD open. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Community and Regional Affairs component explained that the amendment would transfer travel funds for the State Emergency Response Commission. Representative Brown noted that the amendment was related to the previous amendment. The Governor's Amendment for the Department of Community and Regional Affairs component #676, Statewide Assistance was HELD open. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Community and Regional Affairs component Frasca explained that the amendment would fund two economic specialists to aid the Community Development Quota program. Representative Hanley expressed his desire for an offsetting decrement. Representative Navarre spoke in support of the amendment. Co-Chair MacLean requested that the amendment be HELD. The Governor's Amendment for the Department of Community and Regional Affairs component #1179, Community Development Assistance was HELD open. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Community and Regional Affairs component ordered. Representative Hanley MOVED to ADOPT AMENDMENT CRA-1, by request of Representative Hudson (copy on file). He explained that the amendment would reallocate cuts to Perseverance Theatre and Sealaska Heritage Foundation. Representative Therriault spoke against the amendment. A roll call vote was taken on the motion. IN FAVOR: Brown, Foster, Grussendorf, Hanley, Navarre, Parnell OPPOSED: Therriault, Hoffman, Martin, Larson, MacLean The MOTION PASSED (6-5). Representative Navarre MOVED to ADOPT AMENDMENT CRA-2 (copy on file). He explained that the amendment would delete $1.5 million dollars in interagency receipts for the shared fish tax. Representative Grussendorf spoke against the amendment. Representative Hanley spoke in support of the amendment. Co-Chair MacLean noted areas which would be affected by the amendment. Co-Chair MacLean OBJECTED to the motion to adopt Amendment CRA-2. A roll call vote was taken 10 on the motion. IN FAVOR: Brown, Hanley, Navarre, Parnell, Therriault, Larson OPPOSED: Foster, Grussendorf, Hoffman, Martin, MacLean The MOTION PASSED (6-5). Representative Brown MOVED to ADOPT AMENDMENT CRA-3, to delete $22.8 thousand dollars for deputy commissioner position upgrade (copy on file). She explained that the amendment would maintain the position as a special assistant. EDGAR BLATCHFORD, COMMISSIONER, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS stressed the importance of the deputy commissioner position. Representative Hoffman spoke against the amendment. A roll call vote was taken on the motion to adopt Amendment CRA-3. IN FAVOR: Navarre, Hanley, Martin, Parnell, Therriault, MacLean, Larson OPPOSED: Brown, Foster, Grussendorf, Hoffman The MOTION PASSED (7-4). Representative Brown MOVED to ADOPT AMENDMENT CRA-4 (copy on file). She explained that the amendment would restore to a 10 percent reduction the designated grant for the Alaska Special Olympics. She MOVED to AMEND Amendment CRA-4 to change the funding source to the Mental Health Trust Account. There being NO OBJECTION, it was so ordered. There being NO OBJECTION, Amendment CRA-4 was adopted as amended. Representative Brown MOVED to ADOPT AMENDMENT CRA-5 (copy on file). She noted that the amendment would add $5.6 thousand dollars to the designated grant for the Korean Community of Anchorage, Inc. A roll call vote was taken on the motion. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Parnell OPPOSED: Foster, Hanley, Martin, Therriault, MacLean, Larson The MOTION FAILED (5-6). Representative Brown MOVED to ADOPT AMENDMENT CRA-6, on behalf of Representative Ulmer (copy on file). (Tape Change, HFC 93-59, Side 1) 11 REPRESENTATIVE FRAN ULMER spoke in support of Amendment CRA- 6. She noted that the amendment would restore funding for Perseverance Theatre's designated grant from a 30 to a 10 percent reduction. She noted that the designated grant funds a work training program that employs individuals around the state. Representative Brown noted that the adoption of Amendment CRA-1 added $7.3 thousand dollars for Perseverance Theatre. Representative Brown MOVED to AMEND Amendment CRA-6 by deleting $7.3 thousand dollars. There being NO OBJECTION, it was so ordered. A roll call vote was taken on the motion to adopt Amendment CRA-6 as amended. IN FAVOR: Brown, Foster, Grussendorf, Navarre OPPOSED: Hanley, Hoffman, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (4-7). Representative Brown MOVED to ADOPT AMENDMENT CRA-7 (copy on file). Amendment CRA-7 was by request of Representative Davies. REPRESENTATIVE JOHN DAVIES explained that the amendment would restore funding for the Fairbanks Native Association employment program. He noted that the program was previously funded under the STEP Program. Representative Therriault spoke in support of the amendment. He suggested that the program could continue to be funded through the STEP Program. He asked that the amendment be HELD open for further information. Amendment CRA-7 was HELD open. Representative Hoffman MOVED to ADOPT AMENDMENT CRA-8, to appropriate $25.2 thousand dollars to the Bristol Bay Area Health Corporation for a water safety program. Co-Chair Larson MOVED to AMEND Amendment to insert $22.5 thousand dollars which would reflect a 10 percent reduction. There being NO OBJECTION, it was so ordered. A roll call vote was taken on the motion to adopt Amendment CRA-8 as amended. IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre, Parnell, MacLean OPPOSED: Therriault, Hanley, Larson 12 Representative Martin was not present for the vote. The MOTION PASSED (7-3). Representative Brown, on behalf of Representative Brice, MOVED to ADOPT AMENDMENT CRA-9 (copy on file). She explained that the amendment would sustain the level of child care grants paid to child care providers. Representative Ulmer spoke in support of Amendment CRA-9. She noted that child care providers in Alaska make less than garbage collectors. She stressed the importance of providing quality care for Alaska's children. Co-Chair MacLean stated that interagency receipts and federal funding for the Child Care component were reduced by $37.9 thousand dollars in the FY 94 Governor's proposed budget. Mr. Henderson clarified that the additional funding would increase grants to $22 dollars per child. A roll call vote was taken on the motion to adopt Amendment CRA-9. IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre OPPOSED: Hanley, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (5-6). Representative Brown WITHDREW AMENDMENT CRA-10 (copy on file). Representative Brown MOVED to ADOPT AMENDMENT CRA- 11 (copy on file). She stressed that the intent of Amendment CRA-11 is to fund the Day Care Assistance Program at the level of demand. She maintained that the current funding level will not cover all those eligible for the program. Mr. Henderson stated that if a shortfall is anticipated then a wait list would be developed. The program is needs based. The majority of participants are at the lowest income level. Co-Chair MacLean pointed out that there is a $2.5 million dollar lapse from FY 93. She maintained that a wait list does not currently exist. A roll call vote was taken on the motion to adopt Amendment CRA-11 as. 13 IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Foster, Hoffman, Martin, Parnell, Therriault, MacLean, Larson Representative Hanley was not present for the vote. The MOTION FAILED (3-7). Representative Brown MOVED to ADOPT INTENT LANGUAGE CRA-A (copy on file). Intent Language CRA-A was requested by Representative Brice. Representative Brice spoke in support of the intent language. He stated that the intent language would direct the Department of Community and Regional Affairs to request a supplement if the per child reimbursement for child care providers falls below $25 dollars. Mr. Henderson noted that the current level of reimbursement is below $25 dollars. He clarified that the Department pays $20 dollars per child for the first 9 months of the fiscal year. Payments are increased during the last three months of the fiscal year to maintain a yearly average of $22 dollars per day per child. Representative Brown suggested that the intent language be amended to $22 dollars per child per day. Representative MOVED to AMEND Intent Language CRA-A, to delete "$25.0" and insert "$22.0" dollars. Representative Martin spoke against the intent language. There being NO OBJECTION, it was so ordered. A roll call vote was taken on the motion to adopt Intent Language CRA-A as amended. IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre, MacLean OPPOSED: Hanley, Martin, Parnell, Therriault, Larson The MOTION PASSED (6-5). (Tape Change, HFC 93-59, Side 2) DEPARTMENT OF NATURAL RESOURCES Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Natural Resources component #431, Land Development, reference #5000 (copy on file). NICO BUS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF NATURAL RESOURCES explained that the amendment is a realignment of funding and positions to adequately fund contractual obligations. There being NO OBJECTION, the 14 Governor's amendment for component #431, reference #5000 was adopted. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Natural Resources component #431, Land Development, reference #5001 (copy on file). Mr. Bus explained that the amendment reflects capital projects personal services. Members discussed the practice of indicating personal services costs associated with capital projects in the agency's budget. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Natural Resources component #431, Land Development, reference #5002 (copy on file). Mr. Bus clarified that the amendment would delete two positions. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Natural Resources component #431, Land Development, reference #5003 (copy on file). Mr. Bus stated that the amendment would transfer positions from the Division of Land, land disposal to the Division of Agriculture for work on agriculture land parcels. RAGA ELIM, SPECIAL ASSISTANT, DEPARTMENT OF NATURAL RESOURCES testified that the transfer does not reflect a change in the Department's philosophy of land disposal. He stressed that the transfer will allow personnel already working on land disposal for agricultural disposal to work in the appropriate division. Co-Chair Larson emphasized that the positions will continue to do the same job that they currently perform. Representative Brown OBJECTED to the motion to adopt Amendment #421, reference #5003. A roll call vote was taken on the motion. IN FAVOR: Grussendorf, Hoffman, Foster, Martin, Parnell, Therriault, MacLean, Larson OPPOSED: Brown, Hanley Representative Navarre was not present for the vote. The MOTION PASSED (8-2). Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Natural Resources component #455, Agriculture Development (copy on file). Representative Brown OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Hoffman, Grussendorf, Hanley, Martin, Parnell, 15 Therriault, Larson OPPOSED: Foster, Brown, MacLean Representative Navarre was not present for the vote. The MOTION PASSED (7-3). Co-Chair Larson MOVED to ADOPT the Governor's technical amendments for the Department of Natural Resources components #439, #443, #916, #1031, #1191, #427, #802 and explanation of #442. Mr. Jones explained that the amendment for component #442 would change a PCN from 100 percent federal funds to 20 percent federal funds and 80 percent CIP. The position's funding was inadequately reflected. There being NO OBJECTION, the Governor's technical amendments for the Department of Natural Resources components #439, #443, #916, #1031, #1191, #427, #802 and Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Natural Resources component #452, Parks Management (copy on file). Mr. Bus explained that the amendment would establish a project manager for the Federal Abandoned Mine Reclamation Project. Representative Foster OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Brown, Hanley, Martin, Therriault, Larson OPPOSED: Foster, Hoffman, Grussendorf, Parnell, Maclean Representative Navarre was not present for the vote. The MOTION FAILED (5-5). Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Natural Resources component #1882, Oil Spill Response Fund (copy on file). Representative Therriault requested that the amendment be held open. The Governor's Amendment for the Department of Natural Resources component #1882, Oil Spill Response Fund was HELD open. HB 55 was HELD in Committee. ADJOURNMENT The meeting adjourned at 6:12 p.m. 16